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Pourhassan has always had an excuse for not buying stock.
For as long as I have been a shareholder, 4 plus years, I have heard many such excuses.
In the meantime, other insiders have made significant stock purchases, despite, I assume, possessing the same insider knowledge as Pourhassan.
If Pourhassan had wanted to buy stock, he could have.
If Pourhassan now wants to buy stock, he can in my opinion find a way to do so.
With a 50% raise, despite the sp in freefall, Pourhassan should show some confidence in the company, and open up his wallet along with us shareholders.
LM
With shareholder confidence clearly shaken, and many seeming to question Pourhassan's veracity and competence, it would likely calm some frayed nerves if Pourhassan were to make a large stock purchase as other insiders have recently done.
LM
Good question Saltz: Where is Dr. Rae?
LM
Some have suggested that Pourhassan should be retained as CEO, and deserves a rich compensation package, because he salvaged leronlimab (then known as PRO 140) from Progenics, with his own funds and hard work.
However, what Pourhassan may or may not have done many years ago is of no moment now.
In the 4+ years I have invested in Cytodyn, the SP has declined dramatically, and many promises made by Pourhassan have gone unfulfilled.
I invested, in large part, based upon these unfulfilled promises, as I am sure many others did as well.
I have come to believe in the past 4+ years, that Pourhassan lacks the knowledge, background, experience, and disposition needed to lead Cytodyn forward at this point in its existence.
Notwithstanding what I perceive to be Pourhassan's lack of competence and credibility, he has been taking what I consider to be a grossly excessive compensation package, that to my astonishment and chagrin, was increased this past year by 50%, while the SP plummeted.
To add insult to injury, Pourhassan has not purchased one share of stock on the open market, to my knowledge, while continually telling shareholders the SP is greatly undervalued, and will shortly reach an inflection point.
If Pourhassan truly believed this, one would think he would be purchasing stock hand over fist.
To put it bluntly, I no longer believe anything Pourhassan says.
Regardless of what Pourhassan may have done for the company many years ago, he has been repaid many times over, and is owed nothing for his past efforts.
Given my belief that Pourhassan is not the right person to lead this company forward, at this stage of its existence, he should, in my opinion, be replaced with someone who has the knowledge, background, and experience in successfully leading a clinical stage biopharma.
While others may disagree, which is their right, for my money--and I have a lot of that on the line with this company--I strongly recommend that Pourhassan to be replaced, and replaced asap.
LM
I would be ecstatic to be able to sell out at $5 as this would make me a very wealthy man.
However, in the 4+ years I have been been invested in Cytodyn, through numerous Paulson raises and warrant tenders, I have seen my investment decline appreciably in value, while Pourhassan has gotten rich on the backs of us shareholders.
It is bad enough that Pourhassan got a 50% raise this year, while the SP continued to drop, but he has continued to keep everything he has been paid in his pocket without investing one dime back into the company.
I truly hope Pourhassan proves my negative view of him to be wrong, and he fulfills at least some of the promises he has made over the past months and years.
However, until that happens, if it does, I will continue to preach for Pourhassan to be replaced with someone who has the competence and experience to get this company over the hump.
LM
"Slippery" is a very charitable way of describing Pourhassan in my opinion, Saltz.
If Pourhassan believed in the company and Leronlimab as much as he claims, he would have presumably purchased some stock on the open market.
With a 50% raise, Pourhassan no longer has any excuse--not that he did before--for not purchasing stock.
How Pourhassan managed to finagle a 50% raise, and a total compensation package of $1.5M is astounding given how shareholders have suffered under his watch.
In the back of my mind I cannot help but wonder if Pourhassan might possibly be conning the investors to keep his compensation flowing.
Saltz, I, like you, tendered all of my warrants based upon Pourhassan's litany of good news at the time, little of which has come to fruition.
While I continue to believe in the science, I continue to distrust Pourhassan, and have serious concerns about his ability to lead this company to a successful conclusion.
LM
I would find some comfort in Pourhassan's exuberance if he would use some of his bloated, and in my opinion, grossly excessive, compensation, and purchase Cytodyn stock on the open market.
LM
I have mixed feelings about today's shareholder meeting.
On the one hand, it seems there is some type of non-binding agreement that was reached.
Near as I can tell, that non-binding agreement calls for a $50M payment upon product launch, and royalties of 50%, although 50% of what was not clear.
In addition, the physician who spoke after Pourhassan was clear and eloquent.
On the other hand, Pourhassan's presentation was substandard, and not what one would hope for in a CEO.
Not only was Pourhassan's voice muffled (unlike the physician who spoke after him, who came across very clearly), but he spoke much too quickly.
In addition, the history lesson was wasted time, in my opinion, as most were waiting to hear about the non-binding agreement and possible merger that was telegraphed in the last paid interview.
As for the agreement, Pourhassan could have been more clear as to the partner and the terms.
Even if Pourhassan could not disclose the name of the partner, he could have indicated if the partner was BP, a biotech, or some hints about the type and size of the company in question.
In addition, would it really be so hard to describe the terms more clearly?
Does Cytodyn get $50M when Leronlimab is approved, when it gets an order, or when sales reach a certain level?
And what, exactly, is the agreement regarding royalties?
Does Cytodyn get 50% of the gross sales, 50% of the gross profits, 50% of the net profits, or none of the above.
Pourhassan also mentioned six weeks.
But six weeks to what?
A signed agreement, a first payment, or something different altogether?
I understand Pourhassan is not a gifted speaker.
However, he could have practiced his presentation, or even used a teleprompter, so what he said came out clear and coherent, rather than muffled and confusing.
So I continue to be impressed with the science, and frustrated by the CEO.
Apparently many shareholders are frustrated as well as the lukewarm reception given to the salary vote was hardly a vote of confidence. I suspect without the shares of the other directors, that vote would have lost.
So, as always seems to be the case, we are left in a state of uncertainty as our CEO cannot present the facts in a clear and coherent fashion.
Frustrating, to be sure.
My great hope is that Cytodyn partners with a company who promptly replaces Pourhassan with someone who has the knowledge, background, and experience to take this very promising company to the promised land.
LM
A non-binding term sheet is essentially a memorandum of deal points that can later be memorialized in a contract.
Although a non-binding term sheet is not a legally binding commitment, it typically indicates very serious interest on the part of the parties.
If and when a non-binding term sheet becomes a contract, it then needs to be disclosed.
If Cytodyn's non-binding term sheet evolves into a contract with a reputable company, this could represent the non-dilutive financing Cytodyn so desperately needs.
I am looking forward to hearing the details of the term sheet in the call on Thursday.
If this turns ultimately turns out to be a favorable deal, I would hope, in fairness, that people post favorable reviews on IH, rather than look for a way to put a negative spin on positive news.
LM
In that the FDA recently approved a combo study of Leronlimab and Bayer's Stivarga for treatment of mCRC, perhaps that means that Bayer is the undisclosed partner referenced by Pourhassan in today's Pro Active Investors interview.
Anyone has any guesses as to the name of the partner, and the terms of the non-binding offer sheet with such partner, referenced by Pourhassan in today's PAI interview?
LM
It cannot be justified boom.
Good points z.
We, as shareholders, who are paying Pourhassan's salary, should insist upon a huge reduction in Pourhassan's $1.5 million compensation package.
Not only has Pourhassan failed to come though on the promised non-dilutive financing, but most of his promised dates, for many important events, have long since come and gone, while the SP continues to plummet.
We also need some highly qualified independent directors to replace those who appear to me to have been summarily dispatched after having the temerity to challenge Pourhassan on the Pestell termination, and perhaps on other matters as well.
I am therefore voting to retain all directors except Pourhassan.
LM
In addition to voting against the compensation measures, I also voted to retain all directors, except Pourhassan.
My reasoning is that an independent director should be appointed to observe the performance of our CEO, among other things, and to weigh in on his compensation.
Pourhassan's total compensation package is more than $1.5 Million, a 50% increase from last year.
I find such compensation, in the face of chronic dilutive raises, and multiple missed deadlines for virtually every program Cytodyn is involved in, to be unconscionable.
It is also troubling that Pourhassan has still not purchased any stock on the open market, despite preaching about the SP being much too low.
LM
A Tale of Two Presidents
"Read My Lips: No New Taxes"--George H.W. Bush 1988
"There Will Be No More Non-Dilutive Financing"--Nader Pourhassan 2019
The first broken promise cost George HW Bush the presidency.
The second broken promise...
Well, that is up to us, fellow Cytodyn shareholders.
I have cast my ballot to remove Pourhassan as director.
I have also voted against the two compensation ballot measures.
In addition to these votes, I have written to all board members urging them to reduce Pourhassan's compensation package, should the board choose to retain him, but to preferably replace Pourhasssan with a seasoned CEO who can help guide the company in a competent and professional manner.
I urge you, my fellow shareholders, to vote your conscience on the above-mentioned ballot measures, whichever way you choose to vote.
I also urge you to write to all members of the board expressing your opinion, pro or con, on whether to (1) reduce Pourhassan's compensation package, and (2) replace Pourhassan with a more seasoned CEO.
Should you wish to write to the board, the addresses I have are as follows:
Jordan G. Naydenov
Milara, Inc.
49 Maple Street
Milford, MA. 01757
David F. Welch, Ph.D.
Infinera Corproation
140 Caspian Court
Sunnyvale, CA. 94089
Carl C. Dockery
Alpha Advisors, LLC
2026 Crystal Wood Drive
Lakeland, FL. 33801
Scott A. Kelly, M.D.
C/O Resurgens Orthopaedics Spine Center
6635 Lake Drive
Morrow, GA. 30260
Michael A. Klump
Argonne Capital Group, LLC
3060 Peachtree Street NW
Suite 425
Atlanta, GA. 30305
Board of Directors
Cytodyn, Inc.
1111 Main Street, Suite 660
Vancouver, WA. 98660
I still believe in the science.
However, now, more than ever, I believe we need a new CEO.
LM
If Leronlimab is shown to be effective in various indications, in addition to HIV, perhaps some people would opt for Leronlimab over the other toxic HIV drugs for this additional reason.
Maybe someone will think, for example, if I have to take an HIV drug anyway, I might as well take one that not only has no toxicity, but that might prevent metastasis of cancer cells the patient might not even know are circulating in his or her blood stream. Sort of like prophylaxis for cancer metastasis.
Possible?
Now that's funny, PNW.
LM
Letters to the Board Regarding Pourhassan's Compensation
I have sent letters to each of the CYDY board members strongly objecting to Pourhassan's salary, and suggesting he be replaced as well.
The addresses to which my letters were sent are as follows:
Jordan G. Naydenov
Milara, Inc.
49 Maple Street
Milford, MA. 01757
David F. Welch, Ph.D.
Infinera Corproation
140 Caspian Court
Sunnyvale, CA. 94089
Carl C. Dockery
Alpha Advisors, LLC
2026 Crystal Wood Drive
Lakeland, FL. 33801
Scott A. Kelly, M.D.
C/O Resurgens Orthopaedics Spine Center
6635 Lake Drive
Morrow, GA. 30260
Michael A. Klump
Argonne Capital Group, LLC
3060 Peachtree Street NW
Suite 425
Atlanta, GA. 30305
Board of Directors
Cytodyn, Inc.
1111 Main Street, Suite 660
Vancouver, WA. 98660
I think every shareholder should weigh in on Pourhassan's salary, by sending letters to the board, regardless of which side they choose to take.
This is our money, and we have the right to say how we think it should be spent.
LM
Contact Information For CYDY Board Members
Should anyone wish to contact the CYDY board members to comments upon Pourhassan's compensation package, or anything else, following are what I believe to be their business addresses:
Jordan G. Naydenov
Milara, Inc.
49 Maple Street
Milford, MA. 01757
David F. Welch, Ph.D.
Infinera Corproation
140 Caspian Court
Sunnyvale, CA. 94089
Carl C. Dockery
Alpha Advisors, LLC
2026 Crystal Wood Drive
Lakeland, FL. 33801
Scott A. Kelly, M.D.
C/O Resurgens Orthopaedics Spine Center
6635 Lake Drive
Morrow, GA. 30260
Michael A. Klump
Argonne Capital Group, LLC
3060 Peachtree Street NW
Suite 425
Atlanta, GA. 30305
Board of Directors
Cytodyn, Inc.
1111 Main Street, Suite 660
Vancouver, WA. 98660
Pourhassan's compensation package is outrageous and unacceptable!
Although I believe in the science, and am very heavily invested in the company, I am deeply offended by Pourhassan's $1.521 compensation package.
To add insult to injury, Pourhassan's compensation package was increased from $966K in 2018 to over $1.5M, an increase of more than 50%.
In the meantime, Cytodyn is struggling to keep the lights on, having to do toxic Paulson financing deals, despite Pourhassan promising, time and again, that non-dilutive financing was imminent.
There is no justification in my mind for such a rich compensation package, or the year-over-year increase of more than 50%, while the company struggles with its finances.
I will not get into Pourhassan's competence, or lack thereof.
Suffice it to say, he has broken far more promises than he has kept, and does not, in my opinion, present well on behalf of the company.
Adding to my disgust is that Pourhassan has not used his lavish compensation package to purchase one share of stock on the open market. In the meantime, he preaches about how the share price is much too low, and will soon rise to great heights. If Pourhassan truly believes this, he should put his money where his mouth is, and buy some stock.
Finally, I cannot help but wonder if the director, who was head of the audit committee, resigned over a dispute as to Pourhassan's compensation package. If not, we deserve an explanation for why he resigned, just as we deserve an explanation as to why Dr. Pestell was terminated for cause.
It truly bothers me to have to call out our CEO, as Cytodyn is a very significant investment for me.
However, I am disgusted that the company would waste our money by overpaying the CEO who is not only unqualified for the position, in my opinion, but who chooses not to invest any of his lavish salary in the company by purchasing its stock.
In spite of this, I remain optimistic that the science will ultimately prevail, but regret we are being held back by an overpaid and under qualified CEO.
My strong suggestion to my fellow shareholders is to make it known to the board that we strongly disapprove of paying Pourhassan over $1.5M while the company is struggling to pay its bills, and has to resort to toxic dilutive financing to pay Pourhassan's exorbitant compensation.
LM
I think you need to do a little more gripping, and a lot less sipping.
Just kidding Grip.
Best of luck to you and yours.
LM
I had expected to meet and speak with Nader at tonight's shareholder dinner.
However, I have come to learn that Nader will not be attending, and that only Marek will be attending on behalf of the company.
Given this, I will not be attending tonight's shareholder dinner.
If anyone does attend, and learns anything new, I am sure this board would appreciate being apprised of this information.
To those of you who do attend, I hope you have a wonderful and informative evening.
LM
Tonight's shareholder dinner in Santa Monica.
For anyone who will be attending tonight's shareholder dinner in Santa Monica, I will be wearing a red shirt, and blue jeans.
Hope to see some of you there.
LM
"Cause"for termination is determined based on the terms of Dr. Pestell's employment contract, the pertinent terms of which were posted yesterday by Bored Lawyer.
My guess is that the purported "cause" in this case was the alleged continuing failure to perform the reasonable directives of the board of directors.
What such directive(s) Dr. Pestell failed to perform, assuming this was the "cause" for hir termination, is anyone's guess.
LM
Hoping we are right, Saltz.
LM
This stock was at $28 in 2015.
Saltz: I don't have any more details regarding the Jounce deal than what I provided.
I agree that some deal such as this would be most welcome for CYDY.
I keep waiting to wake up to a life-changing PR, and remain hopeful that our day too will come.
However, I am a bit perturbed that events that have been hinted at, if not promised, by NP have not come to pass.
In any event, I have pushed all of my chips to the middle of the table as I exercised all of my warrants, and can only hope for the best at this point.
LM
Celgene just in-licensed a monoclonoal antibody from small biopharma Jounce, which is up 40% in the AH.
Jounce gets $50M upfront,plus $480M in milestone payments.
Celgene is responsible for all development and commercialization activities.
LM
VIIV would be a suitable and appropriate partner for Cytodyn.
Investor Dinner In Santa Monica On July 24.
If anyone is planning on going, please let me know so we can all say meet in person.
LM
Investor
Z421, per your request, here is a re-post:
Per Marek Ciszewski, Cytodyn has hired an agent to help get the type of bookings that took place on Yahoo Finance today.
On a side note, I though NP handled the interview well, and came across as professional, without sounding cocky or arrogant.
LM
Per Marek Ciszewski, Cytodyn has hired an agent to help get the type of bookings that took place on Yahoo Finance today.
On a side note, I though NP handled the interview well, and came across as professional, without sounding cocky or arrogant.
LM
Will do, Misiu.
LM
Investor dinner in Santa Monica on July 24.
I have just been advised that CYDY is hosting an investor dinner in Santa Monica on July 24.
I plan to attend, and hope to see you there.
I don't know who will be attending on behalf of the company.
However, if anyone has any questions they would like me to pose, please let me know.
LM
IncellDx has posted Cytodyn's last three PR's on its website.
I infer from this that IncellDx views its relationship with Cytodyn to be important.
LM
I agree Saltz.
I have to believe the science will ultimately prevail, notwithstanding these obstacles.
LM
Hoping you are right.
I truly believe BH that we will wake up one day to a life changing PR.
I have to believe RP, and the very savvy board members, would not have invested so heavily in Cytodyn if they did not have good reason to believe that leronlimab was going to be a highly successful drug, and the company a huge success.
LM
I wake up every morning hoping to read a life-changing PR.
I am confident this day will come, although it seems to be taking much longer than I expected.
I am hanging in there with you, Saltz, and with the other loyal Cytodyn investors.
LM